The Property Transfer Contract is a fundamental document in German real estate transactions, required whenever real property ownership changes hands. It must be executed before a German notary public (Notar) to be legally valid, as stipulated by German law. This contract type is essential for both private and commercial property transactions, covering everything from residential homes to commercial real estate. The document includes crucial elements such as precise property identification, purchase price arrangements, warranties, and specific provisions required by German property law. It serves as the basis for the actual transfer of ownership through registration in the German land registry (Grundbuch) and typically involves multiple stakeholders, including financial institutions, public authorities, and sometimes real estate agents. The contract must address various aspects of German property law, including encumbrances, pre-emption rights, and specific local regulations.
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1. Parties: Identification of seller(s) and buyer(s) with full legal names, addresses, and registration details if applicable
2. Background: Context of the transaction and confirmation of seller's ownership
3. Definitions: Key terms used throughout the agreement
4. Property Description: Detailed description of the property including land registry details (Grundbuch), plot numbers (Flurstück), and exact address
5. Purchase Price: Statement of purchase price, payment terms, and payment schedule
6. Transfer of Ownership: Terms regarding the transfer of title (Auflassung) and registration in the land registry
7. Possession, Benefits and Burdens: Date of transfer of possession and associated rights and obligations
8. Warranties and Representations: Seller's warranties regarding the property's condition and legal status
9. Encumbrances: Details of existing encumbrances, mortgages, and their handling
10. Costs and Taxes: Allocation of transaction costs, taxes, and fees between parties
11. Notarization and Registration: Requirements for notarization and land registry registration
12. Execution: Formal execution requirements and signature blocks
1. Tenant Rights: Required if the property is currently leased - details of existing tenancies and their treatment
2. Monument Protection: Required if the property is under monument protection (Denkmalschutz)
3. Environmental Provisions: Required if there are known environmental issues or contamination
4. Building Permits: Required if there are ongoing construction projects or pending permits
5. Rights of Pre-emption: Required if there are any existing rights of pre-emption (Vorkaufsrechte)
6. Easements: Required if there are specific easements (Dienstbarkeiten) that need special attention
7. Financing Provisions: Required if the purchase is subject to financing conditions
8. Developer Obligations: Required for newly developed properties with ongoing developer obligations
1. Land Registry Extract: Current extract from the land registry (Grundbuchauszug)
2. Property Plans: Official cadastral plans and building plans
3. Inventory List: List of fixtures and fittings included in the sale
4. Energy Certificate: Energy performance certificate (Energieausweis)
5. Building Documentation: Relevant building permits and documentation
6. Encumbrance Documentation: Details of existing mortgages and other encumbrances
7. Due Diligence Reports: Technical and legal due diligence reports if applicable
8. Property Management Documents: Current service contracts and maintenance agreements
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